Muscat – The initial public offering (IPO) of Abraj Energy Services, a subsidiary of Oman’s global integrated energy group OQ, opens today for the public subscription.

The subscription for the first category (large and institutional investors) runs from February 20 until March 2, 2023, whereas the subscription for the second category (retail investors) runs from February 20 until March 1, 2023.

The Abraj Energy Services IPO is part of Oman Investment Authority’s (OIA) divestment plan to exit some government investments to provide opportunities for Omani and foreign investors to achieve the objectives of Oman Vision 2040. This step aims to promote the private sector’s participation in various economic sectors at the national level. The IPO will enhance the sultanate’s economic diversification policies and attract investors from Oman and abroad.

By virtue of the IPO, 49 per cent of the issued share capital of Abraj Energy Services (i.e., 377,398,000 shares) will be put for sale. The selling shareholders will maintain their right to adjust the IPO size at any time before the end of the subscription period, OQ said in a press statement.

Abraj Energy Services has put 49 per cent of its shares for sale in the IPO after obtaining the necessary regulatory approvals from the Capital Market Authority (CMA).

The shares will be offered in two parallel categories. The first category will be allocated to major investors and will account for 85 per cent maximum of the total public offering. It will be directed to major and corporate investors in Oman and international investors. The subscription price in the first category will be set within the range of 242bz to 249bz per share.

The second category of shares will be offered for small investors and will account for no less than 15 per cent of the total public offering. It is allocated to individual investors in the sultanate. The shares of this second category will be offered at a maximum discounted price of 224bz per share, calculated at a maximum price of 249bz with a discount of 10 per cent.

Abraj Energy Services achieved outstanding performance during the financial year ended December 31, 2021, with revenues amounting to RO125mn. The company recorded a compound annual growth rate of 23 per cent during the 2007–2021 period, supported by the growth of its fleet of drilling rigs.

Abraj Energy Services intends to pay dividends amounting to 85 per cent of its profits generated during the financial year ended December 31, 2022.

Abraj to organise IPO roadshows

Abraj Energy Services will organise five roadshows and information sessions about its initial public offering (IPO) during February 20–26, 2023 in collaboration with the Capital Market Authority (CMA) and Oman Chamber for Commerce and Industry (OCCI).

The roadshows will be organised in different governorates of the sultanate, aiming to educate investors, citizens and residents about the offering and investment opportunity.

The first information session will be conducted on February 20 at the OCCI branch in Sur in the Governorate of South Al Sharqiyah, while the OCCI branch in Sohar will host the second session in the Governorate of North Al Batinah on February 21.

In cooperation with the CMA, the company will organise an expanded information session on February 22 to educate investors and brokers about the IPO. Another information session will be held in the Governorate of Al Dakhiliyah.

The OCCI branch in Nizwa will host the session on February 23, while the OCCI branch in the Governorate of Dhofar will host the fifth information session on February 26 at Directorate General of Heritage and Tourism in Salalah.